Business Report

Joburg Water's strategy to manage R3.1 billion debt and combat water losses

Siyabonga Sithole|Published
Joburg Water has assured residents of full restoration of water supply to communities affected by recent water interruptions due to planned maintenance.

Joburg Water has assured residents of full restoration of water supply to communities affected by recent water interruptions due to planned maintenance.

Image: File

Joburg Water, the City of Johannesburg's water management entity, has announced that it is working around the clock to clear its substantial debt of R3.1 billion owed to Rand Water.

This commitment was articulated by Joburg Water Managing Director, Ntshavheni Mukhwevho, during a media briefing following a series of scheduled maintenance of water and electricity infrastructure in the province.

Mukhwevho's assurances come on the heels of a concerning report presented to Parliament by the Auditor-General's Office, which highlighted significant deficiencies in Joburg Water’s operations.

The report disclosed high water losses, pegged at an alarming 45%, leading to an estimated R2.8 billion in lost revenue for the city entity.

While addressing members of Parliament during the presentation of the City of Johannesburg's 2024/25 audit outcomes to the Standing Committee on Public Accounts (Scopa), Auditor-General officials pointed to extensive shortcomings within key facilities, including wastewater treatment plants and other critical water infrastructure projects. 

On Wednesday, Mukhwevho detailed ongoing initiatives aimed at rectifying the financial strain posed by the debt to Rand Water.

"On the issue of the R3.1 billion owed to Rand Water, as things stand, we are honouring our obligation towards Rand Water. We pay them 60% at the end of each month, and pay the remainder of 40% within the first 10 days of the month. We have an arrangement with them."

Logan Munsamy, the utility's senior manager for Water Demand Management, underscored the challenges resulting from ageing infrastructure and leaks.

He outlined a series of proactive measures being taken to address these ongoing issues, which include the introduction of smart technology, regular maintenance programmes for infrastructure, and significant investments in new infrastructure and reservoirs.

"We have identified priority reservoirs that are currently taken out of service and undergoing repairs. We are doing quite a bit in terms of our ageing infrastructure pipe replacement. When we speak of ageing infrastructure, we have a lot of old asbestos cement pipes and steel pipes. There are various interventions for pressure management. We are also putting smart technology that is currently being installed," he stated.

On the recent maintenance activities, Munsamy assured residents that a slow recovery rate affecting parts of the Commando system and certain areas in Midrand would see significant improvement by the end of the weekend.

This was amid the announcement of Phase 1 of Rand Water’s 2026 planned maintenance programme, which commenced on May 29, and has had a widespread impact on water supply across Johannesburg, Tshwane, and Ekurhuleni.

"So, in terms of the confidence in the full system recovery, we are confident in the way things are working at the moment. We have reconfigured some systems to ensure that those who are impacted recover more quickly. Should we have no major interruptions on the supply side, we are all good to go to have a full recovery by the end of this weekend," he stated.

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